What Is an Angel Investor?

What Is an Angel Investor?

An angel investor is a wealthy person who is willing to invest his or her money in a start-up company to become one of the owners. Angel funding helps to fill the gap between the money an entrepreneur has collected and the venture capital he or she hopes to get.

Angel investors would initially want to know the typical amount raised by an entrepreneur before investing their money. Some of them are professionals in their industries and can therefore help by advising an entrepreneur. Angel investment is considered a high risk since investors tend to expect good performance from the entrepreneur and his team.